Corebridge Financial Affiliate v. Chetrit-Moinian-Minskoff Venture (500-512 Seventh Avenue Foreclosure Judgment)
A New York Supreme Court judge entered judgment of foreclosure and sale against the Garment District office towers at 500 and 512 Seventh Avenue, co-owned by Meyer Chetrit, Joseph Moinian, and Edward J. Minskoff, after the ownership venture defaulted on a $375M loan starting in February 2024. The lender, a Corebridge Financial subsidiary, alleged the venture engaged in self-dealing, including failing to collect rent from a Chetrit Group affiliate and letting electricity bills go unpaid until the lender covered them itself; the borrower agreed not to oppose the foreclosure motion.
Why it matters
Because the loan carried standard non-recourse carve-outs, the self-dealing allegations are what convert an otherwise collateral-only default into more than $163M of personal guaranty exposure for the Chetrits, underscoring how operational shortcuts by a distressed sponsor can trigger full recourse liability. Lenders and co-guarantors in multi-sponsor ownership structures should treat the case as a template for both pursuing and anticipating bad-act recourse claims.
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